Yahoo Inc.'s first-quarter earnings turned out better than analysts expected as online display advertising sales picked up.
The results released Tuesday could help Yahoo CEO Carol Bartz persuade skeptical investors that the company is improving after years of aimlessness.
"Our turnaround is proceeding on schedule," Bartz assured analysts in a conference call. "We are very confident we are headed in the right direction."
The initial reaction was positive. Yahoo shares gained 53 cents, or 3.3 percent, to $16.65 in extended trading.
The company earned $223 million, or 17 cents share, for the first three months of the year. That's a 28 percent decline from $310 million, or 22 cents per share, a year ago.
Excluding unusual gains and charges in both periods, though, Yahoo's earnings would have increased by 4 cents per share compared with last year.
Analysts surveyed by FactSet expected earnings of 16 cents per share.
Revenue fell 24 percent to $1.21 billion. The big decline stemmed from a search partnership with Microsoft Corp.
In a gauge followed more closely by Wall Street, Yahoo's revenue came in at $1.06 billion after subtracting ad commissions. That was $10 million higher than analyst estimates.
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